Question : When a country's currency depreciates, it means that:

Option 1: Its value decreases relative to other currencies.
 

Option 2: Its value increases relative to other currencies.
 

Option 3: Its value remains constant.

Option 4: None of the above.

Question : When a country's currency is undervalued, it means that:

Option 1: Its value increases relative to other currencies
   

Option 2: Its value decreases relative to other currencies
 

Option 3: Its value remains the same as other currencies

Option 4: Its value cannot be determined accurately

Question : What is the primary objective of a country when it undertakes currency devaluation?

Option 1: To increase the value of its currency
 

Option 2: To stabilize the exchange rate
  

Option 3: To reduce the value of its currency

Option 4: To achieve currency convertibility

Question : What is the term used to describe a situation where a country's central bank fixes the value of its currency to another currency at a specified exchange rate?

Option 1: Currency intervention
  

Option 2: Currency hedging
 

Option 3: Currency manipulation

Option 4: Currency pegging

Question : When domestic currency gains value in relation to a foreign currency in the international market, it is termed as a situation of:

Option 1: Currency Depreciation
 

Option 2: Currency Appreciation
 

Option 3: Currency Devaluation

Option 4: None